Business Certification For Sales Staff: Quiz!

49 Questions | Total Attempts: 51

SettingsSettingsSettings
Please wait...
Business Certification For Sales Staff: Quiz!

.


Questions and Answers
  • 1. 
    According to Dodd-Frank and EMIR, certain derivatives are required to be centrally cleared by a Central Counterparty (CCP).  Which of the following statements is true?
    • A. 

      Banks will no longer be required to provide independent mark to market of derivatives

    • B. 

      The centrally cleared trades will require the counterparties to deposit initial and variation margin with the CCP

    • C. 

      Non American and non European counterparties will not centrally clear trades with their European and American counterparties

    • D. 

      Banks will no longer be able to take positions with huge outstanding notionals

  • 2. 
    Proprietary Trading will most likely be done by which of the following:
    • A. 

      Private Bank

    • B. 

      Local Commercial Bank

    • C. 

      Car Importer

    • D. 

      Hedge Fund

  • 3. 
    Which of the following functions is typically NOT the responsibility of the back office:
    • A. 

      Clearing and settlement of all Front Office deals

    • B. 

      Mitigating operational risk

    • C. 

      Record keeping of all Front Office deals

    • D. 

      Running daily risk checks such as VaR aand sensitivity analysis on the Front Office

  • 4. 
    Which of the following is responsible for ensuring that traders mark their books at fair market value:
    • A. 

      Credit Department

    • B. 

      Asset Liability Management (ALS)

    • C. 

      Product Control (IPV)

    • D. 

      Trading Desk

  • 5. 
    Which of the following is most likely IRRELEVANT  to discuss with Middle Office?
    • A. 

      P&L and VaR Reports

    • B. 

      Spot and Vol Sensitivity Analysis

    • C. 

      Expriry and Delivery Reports

    • D. 

      Vol Surface & Market Data

  • 6. 
    Which of the following would probably be most compelled by SD's Structured Products Builder, SPX (Light Version of SD), and Distribution Tools?
    • A. 

      Middle Office

    • B. 

      Pension Fund

    • C. 

      Sales Desk

    • D. 

      Corporation

  • 7. 
    Which of the following should be discussed with Fund Administrator who is interested in handling trade exceptions more efficiently (today they have multiple excel sheets)?
    • A. 

      Automatic Comparison of Trades via eValueX

    • B. 

      DGX (Building Multiple Pages encompassing all the instruments that they cover)

    • C. 

      Blotter (Trade Repository & Greeks)

    • D. 

      SDX (Portfolio with Sensitivity Analysis)

  • 8. 
    Accounting regulations in various countries require corporates to provide scenario analysis reports that show possible changes in MTM according to spot movements and volatility movements of +/- 5% and 10%. What is the most effective SD tool to answer this requirement?
    • A. 

      Portfolio (Override spot and vol data inputs)on SDX

    • B. 

      Term Structure Manipulation on SDX

    • C. 

      Risk Matrix on SDX

    • D. 

      Pricing Table on SDX

  • 9. 
    Which of the following is NOT covered by eValueX?
    • A. 

      Independent fair market value

    • B. 

      Multiple data cuts

    • C. 

      Tradable prices

    • D. 

      Revaluation of cross asset portfolios

  • 10. 
    At a meeting with a large fund administrator, you recognize that he needs an additional vendor to help him with price reconciliation and price challenges for a huge equity portfolio.  What can you offer?
    • A. 

      EValueX

    • B. 

      SDX- EQ

    • C. 

      Trade View (Blotter)

    • D. 

      RMX

  • 11. 
    You are at a meeting with the head of the FX options desk at a Tier 3 bank, who wants to start managing an exotic options book, and is currently looking to replace or enhance his front office capabilities (thousands of vanillas currently). What do you suggest?
    • A. 

      SDX- FX + DataX

    • B. 

      RMX

    • C. 

      EValueX

    • D. 

      TradeView

  • 12. 
    A Tier 3 bank whose core system is Summit, turns to you because they cannot trade back to back TARNS and OTC CM Deals because Summit cannot capture these trades and run lifecycle management. What can you discuss with them?
    • A. 

      Price on SDX, Deal Capture to TradeView, Integrate SD into Summit. When the Front Office trades a TARN or a commodity that Summit cannot handle, TradeView will communicate with the back office system to perform all the necessary trade events (and MTM) and thus the limitation for the front office will be eliminated

    • B. 

      SDX enables the pricing of the widest range of exotic option types on all asset classes. With SDX the back office can price all these trades exactly like the front office. This should eliminate this limitation by the Back Office.

    • C. 

      RMX offers the widest and most comprehensive coverage of exotic options for FX and CM, including TARNs that can automatically be managed and captured into their Back Office System.

    • D. 

      Automated portfolio valuation (eValueX) integrated into the Back Office System enables Mark to Market of the portfolio, including the TARNS and Commodity Instruments, and this is probably the most cost-effective integrated solution to help eliminate this limitation

  • 13. 
    A Tier 3 Bank calls you because they are thinking about replacing Kondor+.  They need a system for collateral management, cash management, and loan management. A combination of SD tools (RMX, TradeView,  SDX-IR, SD-Connect, and possibly a few customizations) can provide them with a great cost-effective solution.
    • A. 

      Yes

    • B. 

      No

  • 14. 
    An SD tool that can help Middle Offices with handling trade exceptions:
    • A. 

      A. eValueX

    • B. 

      B. SDX

    • C. 

      C. Market Data

    • D. 

      D. Pricing Table

    • E. 

      E. Backtesting

    • F. 

      F. All of the above

    • G. 

      G. A,B, and C only

    • H. 

      H. A, B and D only

  • 15. 
    You are at a meeting with the bank's purchasing department.  They inform you that they plan to cut costs dramatically in the bank during the coming year and that you should be prepared to have some licenses canceled.  You could offer the following?
    • A. 

      Discuss DGX with them, especially emphasize that DGX can save them costs in other areas

    • B. 

      B. Discuss with them "Bulk Pricing" (more licenses for a much lower total cost per license)

    • C. 

      C. Discuss the low cost of ownership of distribution tools

    • D. 

      D. Assess with them areas that they targeted for cost-cutting and see if SD can save costs in these and other areas (ie market data costs)

    • E. 

      E. You should not discuss any of these options with purchasing as they are not the decision makers, traders are.

    • F. 

      B, C, and E only

    • G. 

      A, B, and D only

  • 16. 
    The fitting process of SD's data involves six stages of cleansing and fitting the data in order to ensure volatility surfaces optimally match market prices. The best description of the fitting stage involves:
    • A. 

      An optimization mechanism to get the SD vol surfaces (output) as close as possible to the cleansed market data points (input)

    • B. 

      Choosing the best model to calculate the price of the option

    • C. 

      Collection of maximal data points for a tenor to best represent the market

    • D. 

      Choosing the best data type (broker, market maker, exchange) to most accurately represent a particular tenor

  • 17. 
    Which of the following is a key advantage regarding our OTC volatility surface data:
    • A. 

      SD builds arbitrage free, smooth volatility surfaces from cleansed market data

    • B. 

      SD uses the maximal amount of data points per tenor (data inputs)

    • C. 

      SD uses market fixing rates that other vendors do not

    • D. 

      SD doesn't use B&S formula whereas other vendors are pricing using B&S

  • 18. 
    SD uses to exchange data to build CM volatility surfaces.
    • A. 

      True

    • B. 

      False

  • 19. 
    You meet the head of corporate sales at a local 3rd tier bank. They are existing SDX-FX customers - 1 license for traders and 2 for a sales team of 12. Usage report shows poor activity over the past 4 months and a renewal date up in 2 months. They have mentioned cost-cutting during a previous call. Some of the below answers may be correct, but what should be your main direction? 
    • A. 

      Convince him to schedule a training session for the two SD sales users - to make sure they are up to date with the new features.

    • B. 

      Discuss ability to easily upgrade to RMX and a significant discount on price

    • C. 

      Emphasise sales solution functionalities, and offer to expand licenses to the entire team at cost effective bulk pricing, along with ability to capture into tradeview for ongoing alerts etc.

    • D. 

      Offer existing package at dramatic discount - so long as you keep the business.

  • 20. 
    A swap liquidity provider (market maker) is receiving requests and quoting to various corporate banks. He does not have an internal quoting and execution platform but rather communicates through various systems such as BBG, Reuters, email etc... What could you suggest to help them improve their bussines flow?
    • A. 

      Use our risk and analytics solution to price on SDX-IR, capture to RMX and actively manage the risk. all on one simple SAAS application.

    • B. 

      Suggest rolling out a sales solution process between the liquidity provider and the corporate banks - with ability to feed in the market maker's own market data and use the SD RFQ mechanism for execution

    • C. 

      Use SDX-IR with Trade view for full front to back life cycle management

    • D. 

      This is exactly a situation where the distribution solution is not relevant as they are happy with what they have. You need to focus efforts on convincing the traders of the liquidity provider to use SDX-IR as a stand-alone system for 'sanity checks'

  • 21. 
    An existing SDX-FX customer -  (corporate sales desk at a tier 3 bank) is facing growing competition from foreign banks. You meet the head of the desk and he mentions that what they have going for them is their good personal relationship with their corporate customers. What would be WRONG to offer as a value-added service from the bank's perspective?  
    • A. 

      Bank could roll out complimentary DGX access to VIP customers as a value added service

    • B. 

      Enable DCX and offer VIP customers a direct multi bank trading platform - transforming their use of SD from an indicative pricing system to a live execution platform

    • C. 

      Bank could upgrade SDX to corporex functionality (trade view + reports) - upload customers' exposures and generate relevant value added reports (Hedge effectiveness / Hedge Vs. exposure...)

    • D. 

      Bank could roll out SPX licenses to preferred customers - for a simplified pricing/RFQ/execution mechanism between bank and customers - similar to the single bank platforms of the 1st tier banks

  • 22. 
    Banks' middle offices are usually built up of the following teams:
    • A. 

      Mark to Market + Clearing & Settlement + NAV & VAR

    • B. 

      Product control (IPV) + Credit + Market Data + Model Validation

    • C. 

      Traders + Analysts + Clearing & Settlement + Mark to Market

    • D. 

      Structurers + Analysts + NAV & VAR

  • 23. 
    Meeting a hedge fund risk controller, he says he needs weekly mark to market reports on approximately 40 FX options every Thursday at 2 different cut off times - 15:00 & 17:00 London. He also wants to be able to occasionally price and run analytics on his own. Naturally, you show him... 
    • A. 

      SDX + save to portfolio + open historical date at the relevant cut offs + click calculate + export to ecxel

    • B. 

      EValuex - this is a classic revaluation deal

    • C. 

      SDX + deal capture to trade view + scheduled M2M reports (evaluex)

    • D. 

      SDX + save to portfolio + open saved portfolio - click calculate at exactly 15:00 & 17:00 London + export to excel

  • 24. 
    Qualifying a corporate risk manager, this question is NOT relevant...
    • A. 

      What are your exposures?

    • B. 

      How often do you calculate NAV?

    • C. 

      Do you only do zero- cost strategies?

    • D. 

      Are you hedging on a group level and netting your exposures?

    • E. 

      What is your forwards vs options ratio?

  • 25. 
    The term CVA is mostly associated with...
    • A. 

      Un-collateralized trades

    • B. 

      Collateralized trades

    • C. 

      OIS discounting

    • D. 

      Multi-period hedging

Back to Top Back to top